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Wendy’s
What happened? On Monday, JPMorgan upgraded The Wendy’s Co (NASDAQ:WEN) to Overweight with a $15 price target.
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Powered by Money.com - Yahoo may earn commission from the links above. *TLDR: Strong cash flow, growth prospects.
What’s the full story? JPMorgan sees Wendy’s current share price as a compelling value opportunity. The tier 1 bank identifies significant upside with a 6-7% free cash flow yield (F26-28), potentially rising to 8.5% excluding funded franchise development. This leads to a shift to Overweight from Neutral, with a $15 price target by December 2026.
The bank’s confidence stems from de-risked near-term comps expectations and long-term growth potential, particularly in underpenetrated international markets. A reassessment of capital intensity, both discretionary and non-discretionary, confirms a robust free cash flow growth trajectory through F28.
Wendy’s offers an attractive mid- to high-teens annual total shareholder return, driven by a ~5% dividend yield and ~12% share price upside. The bank highlights resilient earnings, supported by corporate actions aimed at strengthening the longevity of its ~95% franchised system.
JPMorgan finds the combination of cash flow visibility, capital efficiency, and growth opportunities compelling, positioning Wendy’s as a standout in the value-oriented investment landscape.
Coinbase Global
What happened? On Tuesday, Monness, Crespi, Hardt downgraded Coinbase Global Inc (NASDAQ:COIN) to Neutral without a price target.
*TLDR: MCH downgrades Coin to Neutral. Long-term growth potential remains.
What’s the full story? MCH downgrades Coin to Neutral, citing concerns over a likely soft first quarter and tepid transaction revenue results, with a cautious outlook into the second quarter. The analysts cut estimates and removed their price target, viewing this as a tactical move ahead of earnings. While May-to-date trading trends show some improvement, limited data keeps MCH wary of extrapolating optimism. They see potential for better buying opportunities after an expected miss and downward estimate revisions, especially following Coin’s 30% surge since April’s low.
Long-term, MCH remains positive on Coin, viewing its cyclical nature as a strength and its profitability as a foundation for multiple expansion ahead of earnings troughing.
The analysts highlight opportunities for total addressable market growth and real-world utility, bolstered by impending regulatory frameworks and Ethereum’s upcoming upgrades, which could drive scalability.
Advanced Micro Devices
What happened? On Wednesday, BofA upgraded Advanced Micro Devices Inc (NASDAQ:AMD) to Buy with a $120 price target.
*TLDR: BofA upgrades AMD, citing growth resilience. Strong product margins drive optimism.
What’s the full story? BofA slapped a Buy rating on AMD, betting big on the chipmaker’s ability to defy China’s AI restrictions and NVIDIA’s GPU dominance. The bank sees AMD’s Q1 beat and bullish Q2 outlook ($7.4bn sales, 10% above forecast) as proof the company can weather headwinds, including a $700mn China hit. Key drivers? A 20%-plus sales growth trajectory through 2026, continued CPU market share gains at Intel’s expense, and a $6.2bn AI GPU target for 2025 that’s “meetable, beatable” with the launch of the MI350 later this year.
Margins could stretch toward 30% by 2027, up from 22% in 2025, while a valuation of 18x CY26E PE looks like a steal next to a projected 27% EPS CAGR.
The bank sees a richer product mix and market share gains, especially in CPUs where AMD’s ASPs ($143) now outpace Intel’s ($133) for just the second time ever.
BofA wiggles off bears with a shrug: AMD’s momentum is real, built on a killer product portfolio and a server GPU outlook that’s on track to hit $6.2bn in 2025, even after absorbing a $1.5bn MI308 impact.
Mosaic Company
What happened? On Thursday, RBC Capital upgraded The Mosaic Company (NYSE:MOS) to Outperform with a $40 price target.
*TLDR: Phosphate markets remain tight. Mosaic poised for growth.
What’s the full story? RBC Capital sees phosphate markets staying tight, driven by steady demand growth and constrained supply, which should keep prices elevated. Mosaic, trading at just 4-4.5x forward 12-month spot EBITDA, appears undervalued. The firm highlights positive catalysts, including operational initiatives like increased phosphate production, lower potash costs, and higher distribution volumes in Brazil, alongside potential monetization of non-core assets. These factors position Mosaic for meaningful margin and volume improvements.
Over the next 6-12 months, RBC expects operational headwinds to ease, with phosphate production ramping up to targeted run-rates by 2026 and per-tonne costs declining. Potash production will shift to the lower-cost Esterhazy mine, further reducing expenses. Meanwhile, the new blending facility in Brazil, set to come online in the second half, should boost distribution volumes.
While Mosaic has faced operational challenges in recent years, RBC believes management’s clear roadmap for improvement, if executed well, sets the stage for stronger performance in 2025 and beyond.
Lyft
What happened? On Friday, Goldman Sachs upgraded LYFT Inc (NASDAQ:LYFT) to Buy with a $20 price target.
*TLDR: Growth outweighs market fears.
What’s the full story? Goldman Sachs sees Lyft’s Q1’25 earnings as a spark in an otherwise tangled rideshare narrative. The bank highlights double-digit Gross Bookings growth, with rides surging 16% YoY, thanks to relentless product innovation and a growing driver base. Adj EBITDA blew past guidance, hitting a 10% incremental margin, while sales and marketing spend stayed lean. Throw in a beefed-up $750M share buyback plan, with $500M set to deploy in the next year, and Lyft’s trajectory looks promising. Yet, short-term chatter—autonomous vehicles, pricing wars, market share—still clouds the view.
Goldman believes the stock is undervalued, upgrading it to Buy, betting on Lyft’s earnings power over the next 2-3 years.
The bank dismisses fears over Lyft’s ability to hit its mid-teens growth target, autonomous vehicle disruption, and competitive pressures as overblown. Even in a duopoly with Uber (NYSE:UBER), Lyft’s execution has been solid, with rides up 16% YoY in Q1. The stock, trading at just 6x 2027 free cash flow, already bakes in modest growth assumptions. Add potential upside from Lyft’s FREENOW acquisition in Europe and its role in the emerging AV ecosystem, and the opportunity outweighs the risks.
Goldman sees a double-digit growth runway ahead, fueled by rational competition and expanding rideshare affordability.
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